|
IS IT ABOUT TIME TO IMPROVE YOUR WORKING CAPITAL?
Competitive pressure and the demand for shorter delivery times, with a greater variety of products and services will continue to increase. Many companies will have difficulty meeting customer expectations and operating with satisfactory financial performance with sound utilization of working capital to satisfy the shareholder.
The missing dimension is not the cash or the inventory tied up, or how to measure them -- it's the time they stay in the business that's the issue! Business Cycle Time is the technical term to understand the staying time. The science of reducing this Cycle Time is called Cycle Time Management.
A company's total business cycle time is measured from the time a customer's need is identified, until the receipt of payment from that customer for the finished product (or service). Developing a game plan to reduce the cycle time to dramatically improve productivity, working capital, financial performance and profits are what all the fuss is about! |